Bennett Enterprises issues a $600,000, 90-day, 4% note to Spectrum Industries for merchandise inventory.

A.

Journalize Bennett Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):

1.	the issuance of the note on January 1.
2.	the payment of the note at maturity on April 1. Assume a360-day year and round amounts to the nearest whole dollar.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5

B. Journalize Spectrum Industries’ entries to record(refer to the company’s Chart of Accounts for exact wording of account titles):

1.	the receipt of the note on January 1.
2.	the receipt of the payment of the note at maturity on April 1.Assume a 360-day year and round amounts to the nearest whole dollar.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5

Answer rating: 100% (QA)

Date Description Debit Credit Assets liabilities Equitie... View the full answer